The comparative balance sheet of Barry Company, for 2011 and the preceding year ended December 31, 2010, appears below in condensed form:
|
Year
|
Year
|
|
2011
|
2010
|
|
Cash
|
$ 72,000
|
$ 42,500
|
|
Accounts receivable (net)
|
61,000
|
70,200
|
|
Inventories
|
121,000
|
105,000
|
|
Investments
|
.....
|
100,000
|
|
Equipment
|
515,000
|
425,000
|
|
Accumulated depreciation-equipment
|
(153,000)
|
(175,000)
|
|
$616,000
|
$567,700
|
|
|
|
|
Accounts payable
|
$ 59,750
|
$ 47,250
|
|
Bonds payable, due 2011
|
.....
|
75,000
|
|
Common stock, $20 par
|
375,000
|
325,000
|
|
Premium on common stock
|
50,000
|
25,000
|
|
Retained earnings
|
131,250
|
95,450
|
|
$616,000
|
$567,700
|
Additional data for the current year are as follows:
|
(a)
|
Net income, $75,800.
|
|
(b)
|
Depreciation reported on income statement, $38,000.
|
|
(c)
|
Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000.
|
|
(d)
|
Bonds payable for $75,000 were retired by payment at their face amount.
|
|
(e)
|
2,500 shares of common stock were issued at $30 for cash.
|
|
(f)
|
Cash dividends declared and paid, $40,000.
|
|
(g)
|
Investments of $100,000 were sold for $125,000.
|
Prepare a statement of cash flows using the indirect method.